Liquidity Farm Review: Unveiling the MLM Crypto Ponzi Scheme and AI Trading Ruse
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Liquidity Farm, a crypto investment platform, raises serious concerns due to its lack of transparency regarding ownership and registration details.
In this review, we dissect Liquidity Farm‘s offerings, compensation plan, and potential regulatory issues to shed light on its legitimacy.
Liquidity Farm’s website, liquidityfarm.io, was registered with questionable details on May 26th, 2023.
Additionally, the platform fails to disclose any information about its ownership and executive team.
This lack of transparency should raise red flags for potential investors.
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 Liquidity Farm Product Offerings
Liquidity Farm does not offer any tangible retail products or services.
Instead, its affiliates are limited to promoting Liquidity Farm’s affiliate memberships.
Liquidity Farm’s compensation plan revolves around affiliate investments in Bitcoin (BTC) and Tether (USDT).
They promise passive returns based on different investment levels.
1. Farm Easy: Invest $300 or more and receive 0.95% daily returns, capped at $1200.
2. Farm Pro: Invest $1201 or more and receive 2% daily returns, capped at $12,500.
3. Compounding Farm: Invest $1,500 or more and receive 1.5% daily returns for 180 days (no withdrawals allowed until the contract ends).
4. Farm Pro-X: Invest $12,500 or more and receive 2.5% daily returns for 180 days.
It’s important to note that Liquidity Farm pays returns only from Monday to Friday.
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Additionally, they incentivize recruitment through a unilevel compensation structure, with referral commissions paid across five levels.
Farm liquidity Unilevel Compensation Structure
Liquidity Farm employs a unilevel compensation structure that encourages affiliates to recruit others.
Affiliates are placed at the top of a unilevel team, and as they recruit more affiliates, these new recruits are placed on subsequent levels, potentially extending indefinitely.
Commissions are paid as a percentage of invested cryptocurrency across these levels, ranging from 5% at level 1 to 0.5% at level 6.
Joining Liquidity Farm
Becoming a Liquidity Farm affiliate is free, but full participation in the income opportunity necessitates a minimum investment of $300, which must be made in Bitcoin or Tether.
They also claims to generate external revenue through AI trading, but there is no evidence to support this assertion.
Additionally, the platform fails to provide any proof of registration with regulatory authorities for its securities offering, which raises concerns of securities fraud.
Furthermore, this business model exhibits characteristics of a Ponzi scheme.
If the platform were genuinely generating consistent daily returns of up to 2.5%, there would be no need for additional investor funds.
The lack of verifiable external revenue sources suggests that new investments are being used to pay existing investors, a hallmark of a Ponzi scheme.
As history has shown, when recruitment slows down, these schemes collapse, resulting in significant financial losses for the majority of participants.
Therefore, caution is advised when considering involvement with Liquidity Farm.